Correlation Between CCFNB Bancorp and Northeast Indiana
Can any of the company-specific risk be diversified away by investing in both CCFNB Bancorp and Northeast Indiana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CCFNB Bancorp and Northeast Indiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCFNB Bancorp and Northeast Indiana Bancorp, you can compare the effects of market volatilities on CCFNB Bancorp and Northeast Indiana and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CCFNB Bancorp with a short position of Northeast Indiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCFNB Bancorp and Northeast Indiana.
Diversification Opportunities for CCFNB Bancorp and Northeast Indiana
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CCFNB and Northeast is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CCFNB Bancorp and Northeast Indiana Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northeast Indiana Bancorp and CCFNB Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CCFNB Bancorp are associated (or correlated) with Northeast Indiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northeast Indiana Bancorp has no effect on the direction of CCFNB Bancorp i.e., CCFNB Bancorp and Northeast Indiana go up and down completely randomly.
Pair Corralation between CCFNB Bancorp and Northeast Indiana
If you would invest 3,405 in CCFNB Bancorp on August 29, 2024 and sell it today you would earn a total of 242.00 from holding CCFNB Bancorp or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CCFNB Bancorp vs. Northeast Indiana Bancorp
Performance |
| Timeline |
| CCFNB Bancorp |
| Northeast Indiana Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CCFNB Bancorp and Northeast Indiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCFNB Bancorp and Northeast Indiana
The main advantage of trading using opposite CCFNB Bancorp and Northeast Indiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCFNB Bancorp position performs unexpectedly, Northeast Indiana can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northeast Indiana will offset losses from the drop in Northeast Indiana's long position.| CCFNB Bancorp vs. Invesco High Income | CCFNB Bancorp vs. Blackrock Muniholdings Ny | CCFNB Bancorp vs. MFS Investment Grade | CCFNB Bancorp vs. Federated Premier Municipal |
| Northeast Indiana vs. PSB Holdings | Northeast Indiana vs. Chesapeake Finl Shs | Northeast Indiana vs. Eagle Financial Services | Northeast Indiana vs. CCFNB Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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